The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has pointed out recent proposals for an increase in utility tariffs as an important issue ahead of the Monetary Policy Committee (MPC) meeting today. The Electricity Company of Ghana recently submitted a proposal to the Public Utilities Regulatory Commission for a steep 225% increase in its Distribution Service Charge.
The Governor, however reaffirmed the central bank’s commitment to maintaining price stability and safeguarding financial stability, even as the economy shows signs of easing inflation pressures.
Dr. Asiamah recalled that in July, the MPC reduced the policy rate by 300 basis points to 25 percent, following improvements in inflation expectations.
He stressed, however, that the Bank remains watchful of potential risks that could derail the progress.
“Against this backdrop of easing inflation pressures and expectations, the MPC in July, as you will recall, reduced the policy rate by 300 basis points to 25.0%, while reiterating our readiness to adjust as this inflation process evolves and risks such as global trade disruptions or prospective utility tariff adjustments are assessed.”
“Colleagues, our commitments remain fair, and these are to maintain price stability, to safeguard financial stability, and to create the conditions for inclusive and sustainable growth,” Dr. Asiama said.
His caution comes as utility providers signal the need for possible tariff adjustments to reflect rising operational costs.
Dr. Asiamah emphasized that the Bank of Ghana will act decisively, if needed, to contain inflationary risks and consolidate economic stability, while ensuring conditions remain favorable for inclusive growth.
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